USD/JPY drops to 113.60 as risk-off intensifies on China trade shock

A minor-recovery in USD/JPY lost legs near 113.85 region, as the yen regained strength following the release of awful China trade figures, which re-ignited risk-off trades across the financial markets. The Chinese data showed a trade deficit in February after having registered a bigger-than expected trade surplus in January.

Moreover, negative performance on the Asian indices and a better capital expenditure figures out of Japan continue to bolster the JPY bulls. On the USD side, muted trading activity around the greenback and treasury yields, leaves the major at the mercy of broader market sentiment.

Later today, the spot may also get influenced by the ADP jobs report and revised nonfarm productivity data due later in the NA session.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 114.20/24 (Classic R1/ Fib R2). A break above the last, the major could test 114.67/77/78 (classic R3/ Mar 3 high) and 114.97/115 (Feb 15 high/ psychological levels) beyond the last. While to the downside, the immediate support is seen at 113.59/54 (50 & 10-DMA) next at 113.06/113 (Feb 16 low/ zero figure) and below that at 112.75/71 (Feb 20 & Mar 1 low).